IDEAS home Printed from https://ideas.repec.org/a/bap/journl/120106.html
   My bibliography  Save this article

A Measure to the Operational Performance of International Hotels in Taiwan: DEA and Malmquist Approach

Author

Listed:
  • Yuan-ho Lee

    (Department of Economics, Fo Guang University, Taiwan)

  • Lung-Tan Lu

    (Department of Management, Fo Guang University, Taiwan)

  • An-De Sung

    (Department of Economics, Soochow University, Taiwan)

Abstract

This paper aims to explore the operational performance of international tourist hotels in Taiwan. To do empirical analysis, we use the models of the Data Envelopment Analysis (DEA) and the Malmquist productivity index to explore the reasons for the difference in operation efficiency of international tourist hotels in Taiwan. It is selected that variables of number of rooms, number of employee, average salary, space of food and beverage, occupancy rate, room revenue, food and beverage revenue, and total operational revenue from each hotel during 2002-2009. It is found that international hotels in Taiwan did not operate on an optimal scale. It is suggested that international hotels need to improve their resource utilization, such as input and output adjustments, use of energy-saving facilities to effectively enhance production efficiency.

Suggested Citation

  • Yuan-ho Lee & Lung-Tan Lu & An-De Sung, 2012. "A Measure to the Operational Performance of International Hotels in Taiwan: DEA and Malmquist Approach," Review of Economics & Finance, Better Advances Press, Canada, vol. 2, pages 73-83, February.
    • Handle: RePEc:bap:journl:120106
    as

    Download full text from publisher

    File URL: http://www.bapress.ca/Journal-6/A%20Measure%20to%20the%20Operational%20Performance%20of%20International%20Hotels%20in%20Taiwan--DEA%20and%20Malmquist%20Approach.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    2. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    3. Claudio Giannotti & Gianluca Mattarocci & Luca Spinelli, 2010. "The relative importance of sector and regional factors in the hotel industry," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 28(3), pages 162-180, April.
    4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1979. "Measuring the efficiency of decision-making units," European Journal of Operational Research, Elsevier, vol. 3(4), pages 339-338, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yin, Pengzhen & Chu, Junfei & Wu, Jie & Ding, Jingjing & Yang, Min & Wang, Yuhong, 2020. "A DEA-based two-stage network approach for hotel performance analysis: An internal cooperation perspective," Omega, Elsevier, vol. 93(C).
    2. Hyo-Jae Joun & Hany Kim, 2020. "Productivity Evaluation of Tourism and Culture for Sustainable Economic Development: Analyzing South Korea’s Metropolitan Regions," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    3. Athanasia Karakitsiou & Markos Kourgiantakis & Athanasia Mavrommati & Athanasios Migdalas, 2020. "Regional efficiency evaluation by input-oriented data envelopment analysis of hotel and restaurant sector," Operational Research, Springer, vol. 20(4), pages 2041-2058, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali Kabasakal & Aziz Kutlar & Murat Sarikaya, 2015. "Efficiency determinations of the worldwide railway companies via DEA and contributions of the outputs to the efficiency and TFP by panel regression," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(1), pages 69-88, March.
    2. Aziz KUTLAR & Ali KABASAKAL & Adem BABACAN, 2015. "Dynamic Efficiency of Turkish Banks: a DEA Window and Malmquist Index Analysis for the Period of 2003-2012," Sosyoekonomi Journal, Sosyoekonomi Society, issue 23(24).
    3. Thompson, Russell G. & Brinkmann, Emile J. & Dharmapala, P. S. & Gonzalez-Lima, M. D. & Thrall, Robert M., 1997. "DEA/AR profit ratios and sensitivity of 100 large U.S. banks," European Journal of Operational Research, Elsevier, vol. 98(2), pages 213-229, April.
    4. Kao, Chiang, 2010. "Malmquist productivity index based on common-weights DEA: The case of Taiwan forests after reorganization," Omega, Elsevier, vol. 38(6), pages 484-491, December.
    5. Suhyeon Han & Shinyoung Park & Sejin An & Wonjun Choi & Mina Lee, 2023. "Research on Analyzing the Efficiency of R&D Projects for Climate Change Response Using DEA–Malmquist," Sustainability, MDPI, vol. 15(10), pages 1-23, May.
    6. Anup Kumar Bhandari & Vipin V, 2018. "Does Export Intensity Affect Firm Performance? Evidence from Basic Metal Industry in India," Working Papers id:12767, eSocialSciences.
    7. Bao Jiang & Enxin Chi & Jian Li, 2022. "Uncertain Data Envelopment Analysis for Cross Efficiency Evaluation with Imprecise Data," Mathematics, MDPI, vol. 10(13), pages 1-9, June.
    8. Jia Li & Yahong Zheng & Bing Liu & Yanyi Chen & Zhihang Zhong & Chenyu Dong & Chaoqun Wang, 2024. "The Synergistic Relationship between Low-Carbon Development of Road Freight Transport and Its Economic Efficiency—A Case Study of Wuhan, China," Sustainability, MDPI, vol. 16(7), pages 1-21, March.
    9. Jens J. Krüger, 2020. "Long‐run productivity trends: A global update with a global index," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1393-1412, November.
    10. Valentina Bosetti & Mariaester Cassinelli & Alessandro Lanza, 2007. "Benchmarking in Tourism Destinations; Keeping in Mind the Sustainable Paradigm," Springer Books, in: Álvaro Matias & Peter Nijkamp & Paulo Neto (ed.), Advances in Modern Tourism Research, chapter 0, pages 165-180, Springer.
    11. Pontus Mattsson & Jonas Månsson & Christian Andersson & Fredrik Bonander, 2018. "A bootstrapped Malmquist index applied to Swedish district courts," European Journal of Law and Economics, Springer, vol. 46(1), pages 109-139, August.
    12. Jeanneaux, Philippe & Latruffe, Laure, 2016. "Modelling pollution-generating technologies in performance benchmarking: Recent developments, limits and future prospects in the nonparametric frameworkAuthor-Name: Dakpo, K. Hervé," European Journal of Operational Research, Elsevier, vol. 250(2), pages 347-359.
    13. Alexander Cotte Poveda, 2012. "Estimating Effectiveness of the Control of Violence and Socioeconomic Development in Colombia: An Application of Dynamic Data Envelopment Analysis and Data Panel Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 105(3), pages 343-366, February.
    14. Don U.A. Galagedera & Piyadasa Edirisuriya, 2004. "Performance of Indian commercial banks (1995-2002): an application of data envelopment analysis and Malmquist productivity index," Finance 0408006, University Library of Munich, Germany.
    15. Alessandra Cepparulo & Gilles Mourre, 2020. "How and How Much? The Growth-Friendliness of Public Spending through the Lens," European Economy - Discussion Papers 132, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    16. Chen, Xiang & Grifell-Tatjé, Emili & Fu, Tsu-Tan, 2023. "A profit difference decomposition model for measuring group performance: an application to Chinese and Taiwanese commercial banks," Omega, Elsevier, vol. 120(C).
    17. Muliaman Hadad & Maximilian Hall & Karligash Kenjegalieva & Wimboh Santoso & Richard Simper, 2011. "Banking efficiency and stock market performance: an analysis of listed Indonesian banks," Review of Quantitative Finance and Accounting, Springer, vol. 37(1), pages 1-20, July.
    18. Finn Førsund, 2013. "Weight restrictions in DEA: misplaced emphasis?," Journal of Productivity Analysis, Springer, vol. 40(3), pages 271-283, December.
    19. Korhonen, Pekka J. & Dehnokhalaji, Akram & Nasrabadi, Nasim, 2018. "A lexicographic radial projection onto the efficient frontier in Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 265(3), pages 1005-1012.
    20. Andrea BONFIGLIO, 2006. "Efficiency and Productivity Changes of the Italian Agrifood Cooperatives: a Malmquist Index Analysis," Working Papers 250, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

    More about this item

    Keywords

    International hotel; Operational performance; Data envelopment analysis; Malmquist productivity index;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bap:journl:120106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carlson (email available below). General contact details of provider: http://www.bapress.ca .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.